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Adrian Salgado

Suburbia: 21st Century Ghetto?

Many see this

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and worry about this

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I see this

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and worry about this

suburbs.jpg

Don’t get me wrong. I worry about this

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But this

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will be just fine.

This

suburbs.jpg

I’m not so sure.

Those of you who read this blog regularly know how I feel about urban sprawl and the separation of land uses. Urban sprawl, amongst other things, is single-handedly responsible for the destruction of communities and innovative economies, increased obesity and the death of the American city.

When American soldiers returned home from World War II in 1946 they came home to highways, automobiles, backyards and garages. The suburbs were born. White flight would follow.

The hustle and bustle of central retail districts and a thriving downtown? Over. Thank modern planners, a poor residential base left all alone, rising crime, the riots of the 1960s and the advent of the regional mall for that.

It’s been a little over sixty years since America’s introduction to urban sprawl. Local suburbs are only now starting to experience the social consequences associated with poor neighborhood planning. During the recent housing boom, hundreds of suburban neighborhoods containing thousands of cookie-cutter homes were developed in places segregated from work, shopping, transportation and entertainment at a time when housing consumer preferences show a trend of reverse white flight.

Americans are ditching the suburbs in favor of the urban experience. Empty-nesters are showing a strong preference for urban living. Furthermore, demographers estimate that by 2025, the U.S. will contain about as many single-person households as families with children. Can you guess where most single-person households want to live?

Just last week I showed a house I have listed for sale to a young prospective buyer looking to occupy the home. When I asked why she was in the market for a new home, she responded:

“I bought a brand new house 2 years ago in the vicinity of 20x St and 10x Ave down south. It’s a beautiful home, but I’m so tired of dealing with the Section 8 tenants that have moved into the neighborhood.”

Adrian Salgado: “Section 8 tenants in a 2-year old community?!”

Prospective Buyer: “It’s horrible. Everyone who bought is getting foreclosed on, houses sit vacant and most of the ones that are occupied are occupied by Section 8 tenants.”

Adrian Salgado: “That’s atrocious!”

Living in the suburbs serves its purpose when you’re one of the few living out there. However, it becomes less attractive when the suburbs become densely built and getting to and from work wipes out 3 hours of your day. It becomes less attractive when gasoline prices hover at over $3/gallon. It becomes less attractive when the Sunday mechanic you moved away from 20 years ago moves in next door. Suburban pioneers in Kendall and Pembroke Pines can attest.

Population density has the opposite effect in urban areas. The more an urban area is filled in and built up, the more crowded sidewalks start to feel safe and alive. The more people feel safe and alive, the more people move into urban areas. The more people move into urban areas, the more people available to support shops, restaurants, retail destinations, art galleries, etc, etc, etc.

So what’s going to happen to

suburbs.jpg ?

No one knows for sure. However, if the experiences of other cities that have already experienced reverse white flight serve as precedent, there is nothing good in store for

suburbs.jpg

Most of the homes in these types of communities will sell at rock-bottom prices to displaced lower-income families. Single-family residences will then be broken into multi-family living arrangements in order to make ends meet. It’s happening already. So, what do you think will happen to schools? Safety? Poverty? Quality of life? Social dysfunction?

Sound familiar? The same issues urban areas have dealt with as a result of white flight beginning in the 60s are the very same issues new age suburbs will have to deal with from here on out.

The big difference is this: many of the structures left behind in the 1960s that were eventually turned into multi-family apartments were sturdily built and as a result have been able to withstand the abuse that was handed to them. If you drive through certain parts of Little Havana, Shenandoah, Wynwood, Buena Vista, Spring Garden, etc. you can see what young urban professionals are doing to these architectural gems. Furthermore, when neighborhoods were developed in the local housing boom of the 1920s, they weren’t developed with the automobile in mind. They were developed with people in mind (what a concept). Therefore, the infrastructure, walkable street grids, mixed uses and self-sustainability have always been in place. We have something to play with. It only needs to be tweaked and improved.

The same can’t be said of properties built in the 80s, 90s and today. The structural integrity of most of those structures are questionable at best. The abuse will be handed. However, drywall and cheap framing just doesn’t hold up as well as concrete block. Infrastructure in the suburbs? It wasn’t created to support the dense development that urbanization would require. Upgrading it so that it does is almost impossible. The results will be devastating.

The next time you’re sitting in front of the tube and the media talks to you about this

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scream right back: “Yo, how about this? What are we going to do about this?”

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I have an idea. How about condemnation and reforestation? Let’s give some back to the wildlife in the Everglades. Maybe keep some for our personal use and become mother nature’s son. How do you think that would sit with local politicians?

Relax, suburbanites. It’s only wishful thinking on my part. Once the suburban landscape is built, it is impossible to unbuild.

However, we already witnessed the perils of white flight in urban areas. Should we just sit around and let the same thing happen to our suburbs?

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

Puerta de Palmas: Setting the Tone for 2008?

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Not since Biltmore II was built on the southwest corner of Biltmore Way and Segovia Street in 1973 has the north side of Coral Gables seen a larger residential condominium project than Puerta de Palmas. Situated adjacent to the Puerta del Sol archway that marks the northeast entrance (Douglas Entrance) to Coral Gables, the 16-story Mediterranean-style structure is home to a whopping 198 units.

One hundred ninety eight units?

Yes, one hundred ninety eight units. Ciento noventa y ocho unidades.

I know, I know. When you’re used to suffering from arthritis of the neck from looking up in disbelief at the behemoths under construction directly to the east, comparing a 198-unit building to something like a 50 Biscayne (which I happen to like a lot) is like comparing the Stardust to the MGM Grand. It’s a Quizno’s unfair match-up. You just don’t do it.

But this is no Magic City. And it sure as hell ain’t Sin City either. This is The City Beautiful, baby. A place where words like “population”, “density” and “control” are serious business and 198-unit buildings are a legitimate concern.

Puerta de Palmas was completed (granted a TCO - Temporary Certificate of Occupancy - I should say) in the 3rd quarter of 2007. According to Miami-Dade County public records, unit closings commenced the first week of August. Since then, approximately 151 out of the 198 units (76%) in the building have closed.

The following is the monthly breakdown of closings along with each month’s percentage of the total units closed:

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Keep in mind that it can take anywhere from 2 - 4 weeks for a deed to be recorded with the Miami-Dade County Recorder. However, judging from the numbers above (no apparent closings in over 60 days), it’s almost safe to assume that “that’s all she wrote”.

As you can see, the developer got off to a quick start and closed approximately 44% of the project’s units within the first month of deliveries. A little bit over 58% of all the closings that have taken place occurred in that first month. The amount of closings were nearly cut in half a month later, only to diminish considerably thereafter.

Of the 151 units that have closed, MLS data shows the following:

Actively Listed For Sale: 22

Actively Listed For Rent: 23

Actively Listed For Sale/For Rent: 8

Actively Listed For Sale (while occupied by a tenant): 13

Rented & Occupied (not actively listed for sale or rent): 38

It should be interesting to see what the fate of the remaining developer-owned units will be. Equally of interest will be the effect that the class of 2008 (55 Merrick, The Ponce de Leon, Ponce Tower, Villa Alhambra, Verona Park, Valencia Grande) has on not only Puerta de Palmas, but newer communities like Villa Zamora, Villa Florini, Andalusia, The Minorca, Villa Calabria, Biltmore Village, Mendoza Village and Ten Aragon, if any.

Some believe that when it comes to real estate certain areas in South Florida play by their own rules.

Any thoughts?

2008 Homestead Exemption Update

I received word yesterday that a letter was recently mailed out to homeowners in Miami-Dade County who qualify for a 2008 Homestead Exemption. In the letter, the Miami-Dade Property Appraiser's Office asks everyone who either filed or plans to file for a Homestead Exemption to also file a Portability Application Form (DR-501T) even if you don't qualify for portability.

The letter explicitly states "if you do not want to apply for this benefit (portability), please write 'none' across the Transfer of Homestead Difference form, sign it, and return with your homestead application".

In other words, if you do not benefit from portability in 2008, write the word 'none" in big black bold letters across the Portability Application Form (DR-501T), sign it, and return it with the Homestead Exemption application.

If you already filed for a Homestead Exemption, you must do the same. However, if I were you, I'd put my 13-digit folio number somewhere on the Portability Application Form (there is a space provided on the application labeled "Parcel ID Number") so that the Property Appraiser's Office knows what property the form corresponds to.

If you did not apply or will not be applying for a Homestead Exemption in 2008, you do not have to do anything. Relax.

A copy of the aforementioned letter, dated February 15, 2008, can be seen here.

By the way, the last day to apply for a Homestead Exemption is March 3, 2008, not March 1, 2008 as stated in the letter.

Adrian Salgado is a Realtor Associate with RED I Realty and can be reached at 305-491-7179 or SalgadoA@gmail.com

Elected Property Appraiser: To Be or Not To Be?

While Amendment One and property tax reform have garnered most of the attention in the upcoming election, another question of much importance that asks voters if they'd like to transfer the duties of the Miami-Dade County Property Appraiser from a person appointed and supervised by the Mayor to a person elected and subject to recall by the voters is on the ballot as well.

Of the 67 counties in the state of Florida, Miami-Dade's Property Appraiser is the only one that remains appointed. Voters elect the Property Appraiser in all other Florida counties.

Victor Diaz, chairman of the Home Rule Charter Review and a proponent of making the Property Appraiser an elected official, was quoted as follows by the the South Florida Business Journal: "there is a lack of information on how taxes are calculated and levied...we think it would promote greater public awareness of how the process works. Property taxes have such a direct and immediate impact on the homeowner's ability to retain their homes and businesses, that the public should have direct input".

According to a Miami Today News article, county commissioner and reputed songstress, Rebeca Sosa, said that an elected property appraiser will have to be more responsive in explanations and educating the public about how taxes happen and the setting of policies and formulas. "They'll have to respond to the public."

Others like Florida House Representative, Carlos Lopez-Cantera, feel that the Property Appraiser should become an elected position because he keeps hearing "that people don't think their properties are fairly assessed".

"A lack of information on how taxes are calculated"? Excuse me, Mr. Diaz. Are we living in the same age? Last I checked, we were all living in the Information Age. According to a Nielsen/Net Ratings press release, nearly 75% of Americans had access to the Internet from home - in 2004. Information on how property taxes are calculated in Florida are just a few Google search words away.

Internet not your thing? You want to hear it from the "horse's mouth"?

The Property Appraiser's Office is a public office located on the 7th floor of the Stephen P Clark Center at 111 NW 1st Street in Dwntwn Miami. The public information counter is open from Monday through Friday from 8:00 am to 5:00 pm. Any one of several qualified evaluators will be more than willing to educate the uninformed on the process of how property taxes are calculated.

Furthermore, the Miami-Dade Property Appraiser's Office conducts an "Interview Period" when additional resources are dedicated to providing taxpayers with an explanation of their assessment for a period of 25 days after the proposed taxes have been mailed (by no later than August 24th). Differences of opinion on value and any discrepancies can be discussed at this time.

Not satisfied with the Property Appraiser's opinion of value? File a $15.00 value petition with the Value Adjustment Board and present your case in front of an independent Special Magistrate who decides whether the Property Appraiser's opinion of value is correct.

Maybe Mr. Diaz, Mrs. Sosa, and Mr. Lopez-Cantera can educate us all on how millage rates, the other side of the property tax equation, affect one's property tax bills.

The formula for property taxation is as follows:

Property's Taxable Value x Millage Rate = Property Tax Amount

For some reason talk about property tax reform and the reasons given for electing a property appraiser all revolve around just one side of the equation. The attempt to reform property taxation has, thus far, focused only on how property is assessed in the state of Florida. The other side of the equation, millage rates - also known as tax rates, are set by the various taxing authorities within whose jurisdiction the property is located. The Property Appraiser, elected or appointed, DOES NOT SET THE TAX RATE.

I don't get it. Local politicians and state lawmakers are trying to correct the side of the equation that they don't control while completely ignoring the side that they can.

According to Florida TaxWatch, a non-partisan nonprofit research institute, which concentrates on statewide taxing and spending issues, total property tax levies in Florida doubled in just the last six years, mostly due to the rising values of existing and new construction that brought along a dramatically increased tax base.

Common sense would tell one that an increased tax base (especially the kind of increases we saw during the housing boom) offers taxing authorities the opportunity to drastically cut the millage rate. Instead, locally elected officials publicly stated that they lowered taxes during the housing boom while blaming the injustice on how Property Appraisers assess properties in Florida.

Just as an example, the City of Miami lowered the city millage an average of just 0.118875 each year from 2002 - 2006. This allowed elected officials to publicly state that they "lowered taxes", while continuing to generously fill city coffers by squeezing the unprotected tax-paying minority faced with high initial assessed values and/or no protection from Save Our Homes aka Amendment 10.

While I do think that the Property Appraiser and his staff should make a more concerted effort to reach out and educate the public on the benefits of the exemptions available, on how Save Our Homes works, and how they derive market value, I don't agree that the position has to become an elected one to do so. The current Property Appraiser, Marcus Saiz de la Mora, is more than capable of performing these and all his other duties as Property Appraiser.

All Property Appraisers in the state of Florida, appointed or elected, are required to follow the rigid guidelines of Chapter 193 of the Florida Statutes.

The Property Appraiser's Office is currently run by a skilled professional with 24 years of experience. I don't see how the public would benefit from turning an administrative position over to a career politician who knows not what a lot and block legal description is, but knows how to tap lobbyists for cash.

Adding an additional layer of bureaucracy to one already in existence is just not the answer to reforming property taxation.

The opinion expressed in the preceding post is the opinion of Adrian Salgado and is not intended to malign any group, club, organization, company, or individual. The views of the writer are his own and do not, in any way, reflect the views of the broker, principals, or other associates at RED I Realty or RED I Mortgage.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

Real Estate Diary - A Day in the Life of a Realtor: Vol. 1

January 16, 2008
11:13 am

I take notice of the time on my stainless steel Casio G-Shock (model number G011D-7B to be exact). My partner - the estimable Raul Estrada - and I are wrapping up a meeting in which we are discussing the marketing section of our 2008 business plan. I figure, "if we leave within the next 7 minutes, it gives us more than enough time to get to La Ciudad Que Progresa by noon" - the time that Rafael and I agreed to meet.

11:15 am

Raul and I agree that we should drop off my car in a central location (I have appointments in the east side of Miami in the latter part of the afternoon; Raul is coming back to East Kendall) and ride out together.

11:27 am

East on Kendall Drive onto the northbound ramp of SR-826. North on SR-826.

Neil Rogers is doing the usual - ridiculing 560 WQAM's management and on this particular day, the Miami Dolphins as well. A press conference is scheduled to interrupt his radio talk show at noon. The Miami Dolphins organization will officially name a new head coach. The Bill Parcels era has officially begun.

11:30 am

I get past Sunset Drive, approaching Miller Road.....and I have to hit my brakes. Vehicular traffic has come to a halt! What the...

A car accident? These damn rubbernecks. "Why can't they put on the blinders and continue going about their business (like talking on their iPhones)?

I have to be in Hialeah within the next 25 minutes or so. It doesn't look like I'll be getting to the Bird Road exit anytime soon. Traffic is literally bumper to bumper.

11:45 am

Just my luck. Stuck in traffic 15 feet above Bird Road and Bird Road Rudy is out there somewhere, not far from here, "fighting a cold war" - waving a Mossburg shotgun and an AK-47 while exclaiming "Metro Dade Gang Unit, here I am baby...come get some whenever you're ready" into the camera pointed at his tattooed handsomeness.

Note: The FBI came instead. Apparently, Rudy the Birdman didn't get the memo stating that Metro Dade (Police) had become the Miami-Dade Police Department several years back. He did receive, but failed to read the memo stating that convicted felons are not allowed to possess firearms, much less .50 caliber and semi-automatic assault rifles .

Earlier in the morning I learned that Bird Road Rudy and I have something in common. We I attended the same high school. I hear that he was registered, but never purchased the compass and map he so desperately needed to find his way into the classroom.

Poor Birdman. Let's all feel sorry for him. Better yet, let's feel sorry for his tattoo artist. That guy may be going out of business as a result of Rudeman's arrest.

7-8-6-5-8-6-5-8-4-4

"Ralo, let's just ride out separately. This traffic is backed up pretty nastily."

"Yeah. Do you think we should get off on Coral Way and take 72nd?"

"I don't know. Let's play it by ear. I'll let you know if I get off."

"OK. Call the guy and tell him that we'll be there a little late."

"Yeah, yeah."

11:55 am

3-0-5-3-6-2-0-3-2-2

"Rafael, que pasa? Te habla A..."

"Chamaco, estamos ahi a las doce en punto."

"No mira, te llamo porque se me va hacer un poco tarde. Parece que hay un accidente en el Palmetto y esto esta que no se mueve."

"En que parte del Palmetto estas tu?"

"Aqui llegando a la salida de Coral Huey."

"No hay problema. Yo le digo al muchacho que te espere. Cuanto te demoras mas o menos?"

"Yo diria como unos veinte minutos, pero en realidad no se decirte porque en si, no se lo que esta pasando."

"No importa. El te espera."

"Esta bien. Cualquier cosa dale mi numero de telefono y dile que me llame."

"Okay."

11:59 am

The Neil Rogers Show is interrupted as promised. I press the CD/AUX button on my car stereo. The Stills' Logic Will Break Your Heart is in CD slot #5.

12:04 pm

As I get past the Coral Way exit and approach the SW 8 ST exit of SR-826, the shoulder on the side of the road has officially become the unofficial 6th lane. A gentleman driving a diesel-powered Ford F-350 is the first to decide that it makes sense to do this (who waits in traffic?). Guess what happens after the guy in the big truck (you do know what they say about guys who drive big trucks right?) decides that his time is too valuable for him to wait? You guessed it. All the other lemmings suddenly conduct a time value analysis and decide that their time is too valuable to wait in traffic as well.

12:06 pm

Just as I backtrack to track #2, Gender Bombs, of Logic Will Break Your Heart, my listening pleasure is interrupted by the jazzy melodies of the Urban Style ringtone of my Motorola RAZR V3i.

305-491-xxxx

"This is Adrian."

"Si, Adrian?"

"Es el que habla."

"Mira, yo soy el cerrajero. Esto es un apartamento o un huerhow?"

"No, no. Es un apartamento. Ya tu estas ahi?"

"Si, si. Estoy parqueado enfrente del apartamento. Tu estas adentro?"

"No. Yo hable con Rafael hace un momento y le explique que me iba a demorar un poco. Hubo un accidente en el Palmetto y esto esta en candela."

"Bueno, vamos a hacer algo. Yo voy a tomarme un cafecito cerquita de aqui. Llamame cuando estes llegando y yo me vuelvo a tirar pa' ca."

"OK. Cual es tu nombre?"

"Fidel."

"Fidel?!"

"Si."

I immediately run this guy's family lineage through my head. If he was born post 1958, what is the probability that his parents hung out and killed some "time" (pun intended) in the Sierra Maestra?

"Bueno, Fidel. Yo te llamo cuando me este bajando en la sesentaiocho (W 68 ST) pa' que sepas que ya estoy llegando."

"Dale!"

The literal English translation of the Spanish word, "dale", can mean one of two things. It could mean "go" or it could be used as a command to "physically inflict pain on him/her".

In Cubanspeak, when two individuals (A & B) are holding a conversation and individual B ends the conversation by saying "dale" to individual A, individual B does not intend for individual A to strike anyone. Nor does he/she intend for him/her to go anywhere. Individual B is simply acknowledging and confirming what was just said. Instead of boringly saying "adios" to end the conversation, he/she opts for "dale".

It's not uncommon to hear it said more than once. You may hear it as "dale, dale". The meaning remains the same. Redundancy changes nothing.

12:10 pm

I've been in traffic for well over 30 minutes. I succumb to peer pressure and decide to join the lemmings that I silently criticized just 6 minutes ago. On to the shoulder I go and swiftly make my way through to the eastbound exit of SW 8 ST.

Before I can get off of this foresaken "expressway", however, I notice that "Driver Darren" in the late model 4-door Mazda 6 on the SW 8 ST northbound on-ramp of SR-826 is attempting to maneuver a 3-point turn to get off of the single-lane on-ramp.

(Urban Theme ringtone..."786-586-5844")

"Do you see the guy trying to get off of the expressway?"

"Sure do..."

Before I am able to finish my reply, guess what happens next?

Yep! The SR-826 northbound on-ramp has officially become an unofficial off-ramp.

Thank you "Driver Darren" in the late model 4-door Mazda 6!

12:17 pm

I'm just happy to be sharing this stretch of "the Trail" with such an interesting cast of characters - the elderly lady and her walker in front of the Palmetto Subacute Care Center, a prostitute and her john exiting La Fuente Motel, and illegal immigrants standing on the sidewalk carrying a look that used to say "will work for food" years ago, but now says "may work for food, but prefer dead presidents".

It's a shame that I left my camera in my bag in the trunk. What was I thinking?

A lefthand turn on SW 72 AVE proves to be a good move. Once I get past the traffic circles, 4-way stop signs, and poorly timed traffic signals, I am able to "jump" on the westbound on-ramp of SR-836 on NW 72 AVE that immediately connects to the northbound SR-826.

12:38 pm

I am now approximately 38 minutes late to my appointment with Fidel the locksmith. Good thing he doesn't seem to mind. It's business as usual in "La Ciudad". They understand that business is conducted in CST (Cuban Standard Time), not EST (Eastern Standard Time).

Fidel is here to change the locks and rekey the door of what is now a bank-owned condominium unit (REO) that Raul and I were chosen to list, market, and ultimately sell.

Before we get to that point, however, we must assess the interior condition of the unit - somewhat boring work that consists of detail-oriented observation (you'd be amazed to learn how difficult this really is) and lots of digital photo taking.

At the very least, I am afforded the opportunity to work on my photography skills and visit the crowded streets of West Hialeah - where painted-on "Chicle Jeans" with high heels are still considered fashionable. I love it.

Nevertheless, it takes us about an hour to do everything that we came to do. Raul and I part ways. I get back on the southbound SR-826 to make my way back to civilization (I'm joking...half).

2:09 pm

My uneventful trip back to civilization (damn, I said it again) allows me to think about how minor traffic accidents on the expressway (or anywhere else for that matter) can affect one's day. A minor traffic accident has literally wiped out one (productive) hour of my day.

Who's responsible for paying me for that hour? Raul - for choosing to partner up with me (or was it vice-versa)? My broker? The DOT? The driver who caused the accident? The lender who chose us to list, market, and ultimately sell the foreclosure property?

Who?

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com